The Virgin Group

surface-to-air missile Yates-Smith Student ID 000292201 CASE STUDY 6 THE VIRGIN GROUP 1. The unified rule of the pure group is to re-ignite static industries, with rattling ideas and developments, thus offering the consumer differentiation. Diversification is an highly important attribute of sodding(a)s rationale. Their SBUs mitigate Virgins scope and because its existing markets and products. Virgin uses the political orientation of the corporate p bent to add structure and counsellor to its various business units, which in develop adds think of due to the effective, directd nest that the rationale provides. . There are trusted strategic relationships between businesses within the Virgin portfolio, these lie in economies of scope. This circumstance refers to the notion that the Virgin groups have synergism amongst its SBUs, therefore utilizing free standing indubitable and intangible resources in order to full comprehend and fulfill a particular new environment or market. This adds foster to a new market whilst ensuring resources are not wasted.An example within Virgin would be their research into the global oil color market and the search for greener fuels for its airlines. 3. Virgin as a corporate parent adds value to its group via the collective ambition and ideology which is ascertained via the strength of the Virgin brand. ane aspect of Virgins Corporate parenting is the ideology of ideate. Virgin provides strategic intent by laying certain ideologies for its SBUs to follow. This provides discipline and sound methodologies for the units to adhere too.Another subdivision of value adding via Virgins parenthood can be explained using the BCG matrix. The Virgin groups portfolio shows high market share and strong egression within their markets. These positive denotations alter management to visualize the potential of synchronous markets and hold growth is fully realized. 4. The great threat that the Virgin brand whitethorn become a ssociated with failure (Johnson et al, 2009). This signifies one of the issues confront the Virgin group.The larger the Virgin portfolio gets, the much issues they will face regarding the density of their variegation and therefore ensuring consumers are not undermined and subjection is retained. Another issue is that of waning portfolio and growth which is susceptible to slowing down. acquaintance of Stars (BCG) turning into Dogs is extremely important to ensure the correct visualization is atoned for and that growth is coitus to the portfolios strength as a whole and not allowed to become complacent, conduct to surplus resources and market share. 1